Need help. Gotta act fast - Posted by Ken_Ar

Posted by Redline on April 26, 1999 at 12:17:07:

Ken - I agree with your attorney. It seems like complete garbage. Right now this home is NOT foreclosed and still belongs to this woman who can sell it or do anything she wants with it.

Good luck and keep us posted!

Need help. Gotta act fast - Posted by Ken_Ar

Posted by Ken_Ar on April 25, 1999 at 14:36:49:

Hey all.

I found a preforclosure and need some feedback. This is a SFR that is worth about 50k. The balance on the mortgage is 22,587. No payments have been made since November of '97.

This house will sell at auction on May 4, so I gotta act fast. The owner is willing to take $1000 for her trouble and then I will need to satisfy the mortage company.

She says this is a simple assumption mortgage that I can take without even a credit check, which is very good for me if it proves to be true.

Structurally the house is in good shape, roof about 3 years old. has siding on it. Inside it is a wreck. every square inch of the floors needs to be recovered with carpet or vinyl. About 1600sf.

It needs to be painted on the inside and a small hole repaired in the ceiling in the den. It has 3 bedrooms and a bath and a half plus the eat in kitchen and a big den that used to be a garage…

All in all I think I am getting a pretty good deal. Money is really not the problem with this one as we have financing in place as either a second plus the assumption or a new loan.

Here is the problem. I have no idea what I have to do tomorrow. Never owned a home and don’t understand the process of closing. I plan to call a RE attorney in the morning and tell him we have to close in a week or lose the deal. What should I look for as far as things that have to take place? How can we rush everything to get this done in a week. I know alot has to be done and don’t want to miss anything.

Any help or advice would be appreciated greatly.


Re: Need help. Gotta act fast - Posted by Mark A. Flores

Posted by Mark A. Flores on April 27, 1999 at 03:14:16:

Hello Ken…
Glad to hear you have found a deal…as the others said do your due diligence and go for it. The pre-foreclosure market and the foreclosure market in general is where I intend to specialize myself so keep us updated as to what happens ok? And Good Luck!

Re: Need help. Gotta act fast - Posted by Ken_AR

Posted by Ken_AR on April 26, 1999 at 10:45:10:

well, I contacted the local title company and they said
they can’t do anything while it is in forclosure and that I needed a release from the courts for them to act.

So, I contacted a local RE attorney and he said they are full of hot air and he is gonna coordinate it all for me. This still looks like a good deal and I cannot wait to get it done.

Thanks for the feedback.


Re: Need help. Gotta act fast - Posted by JPiper

Posted by JPiper on April 25, 1999 at 18:25:09:

Here’s what I would do.

  1. Put the property under contract, taking title subject to the loan. If this is indeed a simple assumption, there is no requirement to assume the loan in any particular fashion. Also include in this an assignment of the escrow account from seller to you. If you don’t understand this have your attorney write up a contract. Have him include language that informs the seller of their continuing liability. Make the contract contingent on verifying the loan balance and inspecting to your satisfaction.

  2. Have the seller sign a mortgage verification form which will enable you to verify the loan balance, the delinquency and other costs, payments, etc. Call the lender, tell them you want to verify the loan, that you will be faxing an authorization to do so.

  3. Take your contract to the title company. Tell them you need an immediate title search and title commitment?.that you’re under a deadline.

  4. While you’re waiting for the title search, recheck the value of the property, and reinspect and figure your repair costs.

  5. Consult with your attorney about anything you’re not familiar with.


Re: Need help. Gotta act fast - Posted by Chan Lipscomb

Posted by Chan Lipscomb on April 25, 1999 at 16:58:34:

Mike may be right, you might get the bank to stall, but then again, you might not. What I would do is have the seller call the bank and tell then that she has the money to catch the loan up, and ask them to fax a letter with the exact amount of money needed to catch up the loan. Get your title work done (I can get it done cheaper with my attorney but faster with a title company, just call them up and say it’s got to be done in 3 days), and at closing take title subject to the loan. Have the closer fedex a check to the bank for the catch up, then follow up with a phone call to make sure that the cancel the sale.

Good luck!

Re: Need help. Gotta act fast - Posted by Michael Carr

Posted by Michael Carr on April 25, 1999 at 15:01:27:

First, you don’t need to close in a week. What you do
need to do immediately is to get with the bank and get
some arrangments worked out to give you more time. If
you have a signed purchase contract, a title company (skip the overly expensive attorney) in the process of doing a quick search and closing, and some tentative contractors signed up to do the work, the bank will probably work with you.

But get your butt in gear and don’t let it fall apart due to paralysis on your part.

Good luck.
contractors lined up to do the fixup work, I’